TrueCar, Inc. is a leading automotive digital marketplace that connects car buyers with a network of TrueCar Certified Dealers across the United States. The company provides a personalized and efficient car-buying experience by offering market-based pricing data, VIN-based price offers, and tools to streamline the purchasing process. TrueCar also collaborates with automobile manufacturers and affinity partners to deliver targeted incentives and co-branded platforms.
- Dealer Revenue - Generates revenue from franchise and independent dealers through subscription fees and pay-per-sale transaction fees. Includes products like TrueCar Wholesale Solutions (TCWS) and TrueCar Marketing Solutions (TCMS).
- OEM Incentives Revenue - Earns revenue from automobile manufacturers by facilitating targeted incentive programs for consumers.
- Other Revenue - Includes ancillary services such as trade-in valuation tools and conditional offers for vehicles through the True Cash Offer program.
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- Given that wholesale revenue negatively affects gross margins and is not expected to grow beyond Q3 levels, what strategies will you employ to improve gross margins in the near term?
- Can you provide more specifics on the timeline and expected revenue contribution of your AI/ML and data monetization initiatives, considering they are part of your plan to reach $300 million in revenue by 2026?
- Despite efforts to stabilize dealer activation, total dealer count remains flat, particularly with independent dealers. What concrete steps are you taking to improve dealer activation and retention in 2025?
- You mentioned increasing marketing spend might compress adjusted EBITDA margins in the short term. How do you plan to balance these growth investments with your target of achieving a 10% free cash flow margin by the end of 2026?
Research analysts who have asked questions during TrueCar earnings calls.
Christopher Pierce
Needham & Company
3 questions for TRUE
Marvin Fong
BTIG, LLC
3 questions for TRUE
Naved Khan
B. Riley Securities
3 questions for TRUE
Rajat Gupta
JPMorgan Chase & Co.
3 questions for TRUE
Ryan Meyers
Lake Street Capital Markets
3 questions for TRUE
Thomas White
D.A. Davidson & Co.
2 questions for TRUE
Chris Pierce
Needham & Company
1 question for TRUE
Jash Patwa
JPMorgan Chase & Co.
1 question for TRUE
Ryan Pfingst
B. Riley Securities
1 question for TRUE
Tom White
D.A. Davidson & Co.
1 question for TRUE
Wyatt Swanson
D.A. Davidson & Co.
1 question for TRUE
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Digital Motors | 2022 | Digital Motors was acquired in Q2 2022 to integrate its automotive retail and financial technology platform into the company’s offerings, such as TrueCar+; later, in June 2023, an agreement was reached to waive certain product development and revenue milestones tied to contingent consideration. |
Recent press releases and 8-K filings for TRUE.
- TrueCar reported 12% year-over-year total revenue growth for Q2 2025.
- Adjusted EBITDA for Q2 2025 was a loss of ($1.2) million, with a margin of (2.5%).
- Total units remained flat year-over-year at 0% in Q2 2025, while traffic declined (29%) year-over-year.
- Monetization increased 13% year-over-year in Q2 2025, indicating higher revenue per transaction.
- The independent dealer count decreased 10% year-over-year in Q2 2025.
- TrueCar reported Q2 2025 total revenue of $47.0 million, a 12.4% increase year-over-year, and reduced its net loss to ($7.6 million) from ($13.5 million) in Q2 2024. Adjusted EBITDA for the quarter was ($1.2 million).
- The company made significant progress towards commercializing TrueCar+ (TC+) by year-end, completing integration with CDK's dealer management system and redesigning the consumer checkout flow, which led to a 115% increase in add-to-cart rate.
- Operational efficiencies include a nearly 30% year-over-year improvement in average cost per sale for non-Affinity Partner units due to restructured performance marketing. A realignment of sales and service teams is also expected to generate approximately $500 thousand of monthly headcount savings starting in Q3 2025.
- Despite an expected 5-10% decline in new vehicle retail sales in the second half of 2025 compared to prior year levels, TrueCar anticipates achieving Adjusted EBITDA profitability and positive Free Cash Flow over the second half of 2025.
- Revenue reached $44.8M in Q1 2025, marking a 9.2% YoY increase (up from $41.1M) while Adjusted EBITDA shifted from $0.9M to negative $3.8M, reflecting margin pressure .
- Units sold grew from 79K to 86K – a surge of 23% YoY that significantly outpaced the industry’s 6.8% growth .
- The company advanced its TC+ pilot with integration efforts involving CDK and Tekion, while managing uncertainties from 25% tariffs that may add approximately $4,500 in cost per vehicle .
- Traffic declined from 7.7M to 5.8M and total dealer count slightly dropped from 11,388 to 11,272 during the period .
- A detailed revenue breakdown across franchise, independent, OEM, and other product lines highlighted a mix of performance factors .
- Revenue grew to $44.8 million (+9.2% YoY) while the net loss widened to -$10.1 million, reflecting higher overall expenses and strategic investments.
- New unit sales increased by 23% YoY, significantly outperforming the industry’s growth rate, indicating robust demand.
- The company advanced its TrueCar+ pilot program, achieving improved conversion rates and digital transaction efficiencies to support future scaling.